Reconciliation bill looks like another giveaway to the sugar industry

Federal lawmakers still haven’t passed a new, updated Farm Bill. But some agricultural programs look like they’ll be part of President Trump’s “One Big, Beautiful Bill” — including, you guessed it, the federal Sugar Program.

In fact, Big Sugar could get even bigger if the House version of the reconciliation bill passes. The sugar program supports domestic producers by offering them loans; the House proposal would increase the sugar loan rate from the current 19.75 cents per pound to 25.38 cents per pound. This loan rate acts as a guaranteed minimum price; the terms of the nonrecourse loans dictate that if market prices fall below the loan rate, processors can forfeit the sugar pledged as collateral to the government and satisfy the loan.

It also increases Big Sugar’s bargaining power. Knowing they have a better loan rate as a fallback, producers don’t have to accept lowball offers from buyers. This can lift average market prices since buyers must meet or exceed the loan rate to compete.

All this keeps the price of sugar in the U.S. artificially high — sometimes twice what sugar fetches on the world market. And according to this report by the Government Accountability Office, it costs consumers $2.5 to $3.5 billion a year, while the program gives farmers $1.4 to $2.7 billion in additional benefits they would not get otherwise.

And this, from a bill that’s SUPPOSED to be saving taxpayers money.

Contact your Senators — Rick Scott and Ashley Moody — and tell them to put the brakes on Big Sugar’s sweet deal.